Circumnavigating bumps and curves in the road ahead

Looking first at technology, Allan Wernham, managing director at CMS Scotland, says: “The rapid development of tech and AI remains a huge opportunity for the Scottish legal sector, but this will require significant investment in both the technology itself and its adoption.“We see an enormous upside in utilising this technology to enhance the scope and efficiency of the services we can provide, enabling our clients to transact and manage risk more effectively.”

Claire Armstrong, Scotland managing partner at Dentons, points to growing client demand for legal expertise around AI, data governance, and technology implementation – areas where forward-thinking Scottish firms can build competitive advantage.

She adds: “Technological disruption presentsboth challenges and opportunities – firms must invest in the right tools and training while ensuring they maintain the personal client relationships that remain central to legal practice.”

According to Armstrong, the adoption of AI in legal practice will accelerate improvement rather than replace lawyers.

Murray McCall, managing partner at Anderson Strathern, believes the continuing evolution of AI and technology presents a chance for Scottish law firms to reshape how they deliver legal services.

“Those who embrace AI as an enhancement rather than a threat will be better equipped to serve clients, but the legal sector should feel the weight of responsibility we have to get this right,” he explains. “We should see ourselves as being integral to shaping AI adoption and speaking up about problems that are arising from this technology – namely, how unregulated it is.”

McCall believes that AI is rapidly altering what clients expect and what lawyers do. For a knowledge-led profession, that means rethinking where its value lies. He says: “AI can impress to an extent on a generalised level, but it cannot replace qualified and experienced advice. The challenge will be ensuring that lawyers remain central to the decision-making process, using technology as a tool rather than viewing it as a replacement.”

Focusing on opportunities over the next 12 months, Armstrong says that with major investments in offshore wind, hydrogen projects, battery storage, and grid infrastructure planned, there is a substantial pipeline of work requiring expertise across project finance, real estate, regulatory, and commercial contracting.

“We are also likely to see continued M&A activity as businesses restructure to adapt to economic conditions and technological change, with corporate and private equity buyers remaining interested in well-managed Scottish companies, particularly in sectors such as life sciences, technology and consumer products,” she adds.

Andrew Blain, managing partner at Shepherd and Wedderburn, expects to see continued opportunities in the energy sector, both in the larger-scale renewables projects as well as flowing from the significant investment being made to upgrade the grid network. He believes the financial services, tech, and life sciences sectors will remain growth areas.

There are other trends, developments and legislation impacting clients that will keep Scotland’s lawyers busy in the months ahead.

Pinsent Masons head of corporate in Scotland, Barry McCaig, says: “Looking ahead, the economy domestically is challenging and increased regulation aligned with variable degrees of investor confidence, means deals are taking slightly longer than in previous years, but our pipeline of work is robust and we are confident 2026 will be another very busy year.”

Lillian Mackenzie, partner in the infrastructure team at Burges Salmon, says opportunities are likely to continue to centre on the energy transition in the near-term, with hydrogen, heat networks, and zero-emission transport at the forefront of investment.

And Katie Russell, partner in the employment team at law firm Burges Salmon, says: “The UK Government’s ambition to deliver a “once-in-a-generation” overhaul of workers’ rights will soon be enshrined in statute with the Employment Rights Bill expected to receive Royal Assent in the coming weeks. This will mark a defining moment in UK employment law and signals the start of what will be a significant shift for employers across Scotland. While the reforms will be introduced over a period of time, the message for employers is clear: change is coming. This is not just another legislative amendment – it represents a fundamental transformation of the employment landscape.”

Turning to diversity and inclusion, while progress has been made by the legal profession in recent years, more remains to be done.

According to Wernham, this continues to present a critical challenge as well as an opportunity for law firms. He explains that CMS is investing to foster a diverse and inclusive environment through some key initiatives, such as its DEIB (Diversity, Equity, Inclusion, and Belonging) networks, mentoring programmes, its Scottish scholarship programme, and its partnerships with organisations that support underrepresented groups in our communities.

Armstrong says: “An improving diversity picture at entry level for law firms that dissipates higher up the seniority ladder shows the challenge is not just about attracting diverse talent – it is about creating environments where everyone can thrive and progress to senior levels.”

She says the sector needs to be more transparent about and more willing to challenge long-standing practices that inadvertently create barriers.

McCall comments: “It has been a tough year for diversity and inclusion in view of developments in the USA, and I’m proud of Anderson Strathern’s clear decision to lead by example and walk-the-walk on diversity and inclusion.”

His firm has an Equality, Diversity and Inclusion Group, a Carers’ group and it celebrates Pride Month, and Black History Month, among other initiatives.

Blain says: “We strive to uphold our commitment to diversity and inclusion in all aspects of our business, including how we treat our employees, interact with our clients, and engage with our suppliers and communities.”

One example is Shepherd and Wedderburn’s work with Black Professionals UK and 10,000 Black Interns to encourage applicants from minority ethnic backgrounds to join its placement programmes.

On the forthcoming Scottish elections, Armstrong says they inevitably create a period of political uncertainty, which may affect business and investment confidence.

“The impact on the legal sector is likely to be relatively contained, compared to some industries. Regardless of the outcome, the fundamental drivers of legal work – commercial transactions, property deals, financing arrangements, and disputes – will continue,” she adds.

McCall believes the rise of new political parties, the economic challenges, and the proportional voting system could all play a major part in sending a very different type of candidate to Holyrood. This may also have profound implications for the UK as a whole in an already unstable world.

“In the heat of any campaign though, it’s vital that the legal sector stays rational and calm,” he adds. “Stability and support are what many sectors are crying out for, and it will be interesting to observe how well reflected that is in manifestos and commitments. The main focus for us, regardless of the impact of campaigning and the final result, is to stay one step ahead of what the elections mean for the clients we’re advising.”